Food Prices, Wages, and Welfare in Rural India

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Jacoby, Hanan G.
dc.date.accessioned
2013-07-10T19:42:18Z
dc.date.available
2013-07-10T19:42:18Z
dc.date.issued
2013-04
dc.date.lastModified
2021-04-23T14:03:19Z
dc.description.abstract
This paper considers the welfare and distributional consequences of higher relative food prices in rural India through the lens of a specific-factors, general equilibrium, trade model applied at the district level. The evidence shows that nominal wages for manual labor both within and outside agriculture respond elastically to increases in producer prices; that is, wages rose faster in rural districts growing more of those crops with large price run-ups over 2004-09. Accounting for such wage gains, the analysis finds that rural households across the income spectrum benefit from higher agricultural commodity prices. Indeed, rural wage adjustment appears to play a much greater role in protecting the welfare of the poor than the Public Distribution System, India's giant food-rationing scheme. Moreover, policies, like agricultural export bans, which insulate producers (as well as consumers) from international price increases, are particularly harmful to the poor of rural India. Conventional welfare analyses that assume fixed wages and focus on households' net sales position lead to radically different conclusions.
en
dc.identifier
http://documents.worldbank.org/curated/en/2013/04/17594223/food-prices-wages-welfare-rural-india
dc.identifier.uri
http://hdl.handle.net/10986/14451
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, D.C.
dc.relation.ispartofseries
Policy Research Working Paper;No.6412
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTING
dc.subject
AGRICULTURAL COMMODITIES
dc.subject
AGRICULTURAL COMMODITY
dc.subject
AGRICULTURAL COSTS
dc.subject
AGRICULTURAL ECONOMICS
dc.subject
AGRICULTURAL EXPORT
dc.subject
AGRICULTURAL GOODS
dc.subject
AGRICULTURAL INPUTS
dc.subject
AGRICULTURAL MARKETS
dc.subject
AGRICULTURAL PRICE
dc.subject
AGRICULTURAL PRICES
dc.subject
AGRICULTURAL PRODUCT
dc.subject
AGRICULTURAL PRODUCTION
dc.subject
AGRICULTURAL SECTOR
dc.subject
AGRICULTURE
dc.subject
AVERAGE PRICE
dc.subject
AVERAGE PRICE CHANGE
dc.subject
BASE YEAR
dc.subject
COMMERCIAL POLICY
dc.subject
COMMODITY PRICE
dc.subject
COMMODITY PRICES
dc.subject
CONSTANT RETURNS TO SCALE
dc.subject
CONSUMER PRICES
dc.subject
CONSUMERS
dc.subject
CONSUMPTION EXPENDITURES
dc.subject
COTTON
dc.subject
CRISES
dc.subject
CROP PRODUCTION
dc.subject
CROPS
dc.subject
DEMAND FUNCTION
dc.subject
DEMOGRAPHIC
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DISCOUNT RATE
dc.subject
DISTRIBUTION OF INCOME
dc.subject
DOMESTIC MARKET
dc.subject
DOMESTIC MARKETS
dc.subject
DOMESTIC PRICE
dc.subject
ECONOMETRICS
dc.subject
ECONOMIC THEORY
dc.subject
ELASTICITY
dc.subject
ENGEL CURVE
dc.subject
EQUAL SHARES
dc.subject
EQUATIONS
dc.subject
EQUILIBRIUM
dc.subject
EXPECTED PRESENT VALUE
dc.subject
EXPENDITURE
dc.subject
EXPENDITURES
dc.subject
EXPOSURE
dc.subject
FAIR
dc.subject
FAMILY LABOR
dc.subject
FARM
dc.subject
FARM PRODUCTIVITY
dc.subject
FARM SECTOR
dc.subject
FARM WORKERS
dc.subject
FARMERS
dc.subject
FARMLAND
dc.subject
FARMS
dc.subject
FOOD PRICE
dc.subject
FOOD PRICES
dc.subject
FOOD SECURITY
dc.subject
FUTURE RESEARCH
dc.subject
GENERAL EQUILIBRIUM
dc.subject
GEOGRAPHICAL LABOR MOBILITY
dc.subject
GLOBALIZATION
dc.subject
GOVERNMENT INTERVENTIONS
dc.subject
HOUSEHOLDS
dc.subject
INCOME
dc.subject
INCOME EFFECT
dc.subject
INCOME EFFECTS
dc.subject
INCOME ELASTICITY OF DEMAND
dc.subject
INCOME GROUP
dc.subject
INDUSTRIALIZATION
dc.subject
INFLATION
dc.subject
INNOVATION
dc.subject
INNOVATIONS
dc.subject
INPUT PRICES
dc.subject
INSURANCE
dc.subject
INTERNATIONAL MARKETS
dc.subject
LABOR COSTS
dc.subject
LABOR FORCE
dc.subject
LABOR MARKET
dc.subject
LABOR MARKET SEGMENTATION
dc.subject
LABOR MARKETS
dc.subject
LABOR MIGRATION
dc.subject
LABOR PRODUCTIVITY
dc.subject
LABORERS
dc.subject
LOW-INCOME COUNTRIES
dc.subject
MARGINAL PRODUCT
dc.subject
MARGINAL VALUE
dc.subject
MARKET ACCESS
dc.subject
MARKET INTEGRATION
dc.subject
MARKET PRICES
dc.subject
MARKET SEGMENTATION
dc.subject
MARKET WAGE
dc.subject
MARKETING
dc.subject
MILLS
dc.subject
MINIMUM WAGE
dc.subject
MOBILITY OF LABOR
dc.subject
NOMINAL WAGES
dc.subject
OUTPUT
dc.subject
OUTPUTS
dc.subject
PARTIAL EQUILIBRIUM ANALYSIS
dc.subject
PER CAPITA INCOME
dc.subject
POLITICAL ECONOMY
dc.subject
PRICE CHANGE
dc.subject
PRICE CHANGES
dc.subject
PRICE ELASTICITY
dc.subject
PRICE INCREASE
dc.subject
PRICE INCREASES
dc.subject
PRICE INDEX
dc.subject
PRICE INFLATION
dc.subject
PRICE MOVEMENT
dc.subject
PRICE MOVEMENTS
dc.subject
PRICE TRENDS
dc.subject
PRODUCER PRICES
dc.subject
PRODUCTION FUNCTION
dc.subject
PRODUCTION FUNCTIONS
dc.subject
PRODUCTIVITY
dc.subject
RETAIL
dc.subject
RETAIL PRICES
dc.subject
RICE PRICES
dc.subject
RURAL AREAS
dc.subject
SAFETY
dc.subject
SAFETY NET
dc.subject
SALES
dc.subject
STORAGE CAPACITY
dc.subject
SUBSTITUTION
dc.subject
SUGAR
dc.subject
SUPPLY OF SERVICES
dc.subject
TARIFF RATES
dc.subject
TRADE BARRIERS
dc.subject
TRADE LIBERALIZATION
dc.subject
TRADE POLICY
dc.subject
UNEMPLOYMENT
dc.subject
UNSKILLED LABOR
dc.subject
VARIABLE INPUTS
dc.subject
WAGE DETERMINATION
dc.subject
WAGE GROWTH
dc.subject
WAGE INCREASES
dc.subject
WAGES
dc.subject
WEALTH
dc.subject
WHOLESALE MARKETS
dc.subject
WHOLESALE PRICE
dc.subject
WHOLESALE PRICES
dc.subject
WTO
dc.title
Food Prices, Wages, and Welfare in Rural India
en
okr.crosscuttingsolutionarea
Jobs
okr.date.disclosure
2013-04-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/04/17594223/food-prices-wages-welfare-rural-india
okr.globalpractice
Agriculture
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6412
okr.identifier.externaldocumentum
000158349_20130417142134
okr.identifier.internaldocumentum
17594223
okr.identifier.report
WPS6412
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/04/17/000158349_20130417142134/Rendered/PDF/wps6412.pdf
en
okr.region.administrative
South Asia
okr.region.country
India
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Agriculture :: Agribusiness
okr.topic
Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic
Economic Theory and Research
okr.topic
Private Sector Development :: Emerging Markets
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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